FCC OKs Clearwire/Sprint WiMax Deal; Both Stocks Soar

By Eric Savitz

The FCC voted 5-0 today to approve a plan to combine Sprint‘s Xohm network with Clearwire‘s (CLWR) own WiMax network. Investors in the newly combined company include Google (GOOG), Intel (INTC) and a group of cable companies.

According to the AP, the Justice Department has already indicated that it will allow the deal to proceed, but will continue to monitor it.

Both Sprint and Clearwire today built on robust gains posted on Monday.

Sprint, which rose 87 cents yesterday, added 15 cents in today’s regular session, and has advanced another 42 cents to $4.57 after hours. That brings the two-day rally to $1.44, or 46%.

Clearwire shares rose 71 cents yesterday, 47 cents in today’s regular session and another $1.40, or 14.2%, to $11.25 in the late session. That brings this week’s CLWR rally to 31.5%; the stock is up five straight days, and including the after-hours jump has gained 87% since the close last Tuesday at $6.02.

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There are 17 comments

NOVEMBER 4, 2008 6:53 P.M.

Both Stocks Soar wrote:

Sprint is a $4 stock... that is soaring??? Not hard to get a 46% jump when you start at 3 dollars.

NOVEMBER 5, 2008 8:29 A.M.

mooman wrote:

yeah. tell me when it gets back to 20.00 where it belongs

NOVEMBER 5, 2008 8:56 A.M.

Bob wrote:

Wimax is a great technology. I just wonder how it will affect the pure play WiMAX companies? They should all benefit from increased spending.

NOVEMBER 5, 2008 12:43 P.M.

Too volatile for me wrote:

Stock soaring 46% one day and then dropping 10% the next. Had the deal not gone through, it would probably not moved at all....CLWR rose $11.40?..I think that's a typo.

NOVEMBER 5, 2008 1:21 P.M.

nick wrote:

is it a good buy @ 3.84 ?

NOVEMBER 6, 2008 12:10 P.M.

Jay wrote:

Sprint at under $4/share is probably a good buy. Sprint has a lot of valuable spectrum, which is still very precious even in this poor economy. However, Sprint has a lot of debt which is a handicap in the current credit situation. I'd advise making a buying decision after Sprint announces Q3 results on Friday.

NOVEMBER 7, 2008 12:06 A.M.

wimaxed wrote:

Great to hear FCC approved the deal. Clearwire and Sprint have been working on this for some time and at some point in time they dropped the deal but I'm glad to hear WiMAX will finally go nation wide.

I wouln't touch CLWR stock at anything above .25, its true value is ZERO, but I'd do a quick momentum play for a quarter per share. Are you familiar PONZI schemes? It will take $15-20B + 5 years to build this network, even then the business model is not viable. In the mean time LTE will leapfrog wimax in terms of technology and speed to market. Sorry this is the truth, if you hold long you'll find out.

NOVEMBER 19, 2008 10:50 P.M.

sam gaza wrote:

I think sprint is agreat deal since it has agood potential in the future of telecommunication tech. sector. The stock of sprint will go up very soon, since they low operational cost compared to the competition

NOVEMBER 19, 2008 10:53 P.M.

from my love lisa the swan wrote:

sprint will have a great potentioal, therfore sprints,s stock will rise sharply soon.

NOVEMBER 19, 2008 10:55 P.M.

jim va wrote:

sprint stock is one of the best deals in the market, it is perfect time to buy, check its value by friday

NOVEMBER 19, 2008 10:56 P.M.

nancy, finance guru wrote:

sprint is an the best time to buy, buy now and enjoy.

NOVEMBER 19, 2008 10:58 P.M.

kirk wrote:

buy sprint, i think it will double since there operational cost is so low. and it is a larg corporation

NOVEMBER 24, 2008 2:25 A.M.

dan wrote:

sprint stock is in a perfect time buy, the reason is, it is a huge company and the stock is cheap now , and it has nowhere to go bu up, and some expect it to double.

NOVEMBER 24, 2008 2:28 A.M.

jay bolten wrote:

sprint is very inovative copmany, and it has been around for a long long time, it is one to the most know names in the telecommunication industry, there stock will go up, i do agree.

NOVEMBER 24, 2008 2:32 A.M.

rose wrote:

sprint stock expected is at its lowest. i expect it to bouble at the begining of the month.

DECEMBER 3, 2008 10:21 A.M.

Geddy wrote:

Clearwire is a HORRIBLE company & now with another horrible company wasting money they should be using to shore up their current customers (Sprextel), they'll only get worse.

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Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.